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| Version 1 | Version 2 |
|---|---|
| World economy faces weakest growth since 1990 - IMF | World economy faces weakest growth since 1990 - IMF |
| (7 months later) | |
| Kristalina Georgieva | Kristalina Georgieva |
| Kristalina Georgieva | |
| The global economy is set to grow at roughly 3% over the next five years - the slowest pace since 1990, the head of the International Monetary Fund has said. | The global economy is set to grow at roughly 3% over the next five years - the slowest pace since 1990, the head of the International Monetary Fund has said. |
| Kristalina Georgieva said the path ahead was "rough and foggy" - and warned that cooperation to address the problems was becoming more difficult. | Kristalina Georgieva said the path ahead was "rough and foggy" - and warned that cooperation to address the problems was becoming more difficult. |
| She spoke in Washington ahead of the IMF's annual meeting. | She spoke in Washington ahead of the IMF's annual meeting. |
| In her remarks, she called for more help for low-income countries. | In her remarks, she called for more help for low-income countries. |
| "For the weakest members of our global family, additional support from wealthier countries is essential," she said, calling for countries to boost funds for the IMF, which makes low-cost loans to countries in need. | "For the weakest members of our global family, additional support from wealthier countries is essential," she said, calling for countries to boost funds for the IMF, which makes low-cost loans to countries in need. |
| The organisation is bracing for a wave of requests for help or debt restructuring, as the shocks from Covid-19 crisis, the war in Ukraine and soaring cost of living continue to reverberate. | The organisation is bracing for a wave of requests for help or debt restructuring, as the shocks from Covid-19 crisis, the war in Ukraine and soaring cost of living continue to reverberate. |
| What is the IMF and why does it matter? | What is the IMF and why does it matter? |
| What is the IMF and why does it matter? | |
| Can we trust economic forecasts? | |
| Can we trust economic forecasts? | Can we trust economic forecasts? |
| Last year, global growth dropped almost in half to 3.4%, following a post-pandemic surge in 2021. | Last year, global growth dropped almost in half to 3.4%, following a post-pandemic surge in 2021. |
| That was below the 3.8% average growth of the last two decades. The slowdown has continued this year, despite strong job markets in countries such as the US. | That was below the 3.8% average growth of the last two decades. The slowdown has continued this year, despite strong job markets in countries such as the US. |
| The IMF said it expected growth to dip below 3% in 2023, with India and China accounting for more than half of the growth. | The IMF said it expected growth to dip below 3% in 2023, with India and China accounting for more than half of the growth. |
| Roughly 90% of advanced economies are expected to see growth decline, reflecting the weight of higher borrowing costs, after central banks raised interest rates sharply to stabilise soaring prices. | Roughly 90% of advanced economies are expected to see growth decline, reflecting the weight of higher borrowing costs, after central banks raised interest rates sharply to stabilise soaring prices. |
| For low-income countries, higher borrowing costs come at a time of weakening demand for their exports. | For low-income countries, higher borrowing costs come at a time of weakening demand for their exports. |
| "That is a severe blow, making it even harder for low-income nations to catch up," Ms Georgieva said. | "That is a severe blow, making it even harder for low-income nations to catch up," Ms Georgieva said. |
| "Poverty and hunger could further increase, a dangerous trend that was started by the Covid crisis," she added. | "Poverty and hunger could further increase, a dangerous trend that was started by the Covid crisis," she added. |
| While calling for support for vulnerable nations, Ms Georgieva said authorities should continue to raise interest rates to fight inflation - "so long as financial pressures remain limited". | While calling for support for vulnerable nations, Ms Georgieva said authorities should continue to raise interest rates to fight inflation - "so long as financial pressures remain limited". |
| "If that were to change, policymakers would face an even more complicated task, with difficult trade-offs between their inflation and financial stability objectives, and the use of their respective tools," she said. | "If that were to change, policymakers would face an even more complicated task, with difficult trade-offs between their inflation and financial stability objectives, and the use of their respective tools," she said. |
| Related Topics | Related Topics |
| International Monetary Fund (IMF) | International Monetary Fund (IMF) |
| Economy | Economy |